A rally that boosted crude prices more than 10 per cent over the past two weeks could be in serious trouble if the US and China dont take a significant step toward resolving their trade dispute this weekend, according to JPMorgan Chase & Co.s head of oil research and strategy.
Investors are looking for “meaningful” progress from the meeting in Japan between US President Donald Trump and Chinas Xi Jinping — something more than merely resuming negotiations, Abhishek Deshpande said in an interview. Without it, Brent crude, now trading around $67 a barrel, could slide to $60 or lower, he said.
The two leaders confab at the G-20 economic summit will set the tone for next weeks meeting of the Organization of Petroleum Exporting Countries and other top crude producers. If theres progress toward a trade deal, the OPEC+ group may just extend existing output curbs, Deshpande said. If not, they may have to announce “meaningfully deeper” cuts to reassure investors worried about a global oversupply.
“These two meetings really have to show something more positive to turn around investor sentiment,” Deshpande said. “It cannot be something thatRead More – Source